In India, retirement mutual funds can provide a reliable way to secure your future. They allow you to gradually grow your savings and accumulate a significant corpus. While choosing the best retirement funds, you can focus on several parameters like 5-year returns, the reputation of AMC, and asset allocation.

If you are looking for a safe investment option, you can consider fixed deposit. They offer guaranteed returns and a fixed interest rate throughout your investment tenure.

• Retirement mutual funds are specifically designed to provide stable returns. They can help you accumulate a sizeable corpus over time.
• Some top retirement mutual funds to consider in 2024 are Bank of India Mid and Small Cap Equity & Debt Fund, Quant Absolute Fund - Growth, JM Aggressive Hybrid Fund (Regular), and ICICI Prudential Equity and Debt Fund.
• Most retirement mutual funds balance large, mid, and small-cap investments. They also incorporate some debt instruments to reduce risk.

Below is a list of the top five retirement mutual funds. These funds follow an “aggressive hybrid” investment approach and are picked based on the highest 5-year returns (arranged in descending order):

(Data as of September 25, 2024)

The above retirement mutual funds have shown strong historical performances in the past five years and can be considered while planning for retirement. However, be aware that past performance is not the sole indicator of future performance. Therefore, investors are advised to perform their own research and pick retirement mutual funds based on their risk appetite and investment preferences.

For more clarity, let’s have a look at the general overview of the top retirement mutual funds mentioned above:

1. Bank of India Mid and Small Cap Equity & Debt Fund

As of March 2024, this retirement mutual fund had Rs. 921.20 crores in assets under management (AUM) with an expense ratio of 2.30%. The fund diversifies its allocations across various sectors as follows:

• Automobile: 9.86%
• Services: 8.51%
• Financial: 8.06%
• Metals and mining: 7.15%
• Chemicals: 6.25%

Also, the fund’s top investments include some well-known companies like Oil India, Jindal Stainless, Indus Towers, Castrol India, and UNO Minda.

2. Quant Absolute Fund - Growth Option - Regular Plan

As of March 2024, this retirement mutual fund had Rs. 2,295.21 crores in AUM with an expense ratio of 1.99%. The sector-wise allocation of this fund is as follows:

• Financial: 23.76%
• Energy: 22.37%
• Consumer staples: 13.62%
• Insurance: 5.43%
• Materials: 4.79%

Some of its major holdings include Reliance Industries, ITC, LIC, Jio Financial, and Adani Power. It’s a solid choice for long-term retirement planning as it invests in a strategic mix of large, mid, and small-cap stocks.

3. JM Aggressive Hybrid Fund (Regular) - Growth Option

As of March 2024, this fund has Rs. 486.95 crores in AUM with an expense ratio of 2.32%. This retirement mutual fund practices diversification and invests in various sectors as follows:

• Financial: 12.11%
• Capital Goods: 9.04%
• Services: 8.79%
• Technology: 7.31%
• Automobile: 6.58%

Additionally, to reduce risk and generate stable returns, it also invests in various debt instruments, such as 7.10% GOI (08.04.2024), 7.18% GOI (24.07.2037), 7.92% Bajaj Housing Finance (16.03.2026), and more.

4. ICICI Prudential Equity and Debt Fund - Growth

As of March 2024, this fund is Rs. 39,090.93 crores in AUM with an expense ratio of 1.59%. This retirement mutual fund also invests across various sectors, split as follows:

• Financial: 17.46%
• Energy: 13.75%
• Automobile: 8.90%
• Healthcare: 5.83%
• Communication: 4.57%

Additionally, some key holdings are companies like NTPC, ICICI Bank, Maruti Suzuki India, and HDFC Bank.

5. Mahindra Manulife Aggressive Hybrid Fund - Regular Plan - Growth

As of March 2024, this mutual fund had Rs. 1,363.60 crores in AUM with an expense ratio of 2.07%. The sector-wise asset allocation of this retirement mutual fund is as follows:

• Financial: 17.91%
• Technology: 8.57%
• Energy: 8.20%
• Consumer staples: 7.51%
• Capital goods: 6.16%

You can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 8.85% p.a.